Loblaw Hit With Class Action Lawsuit on Hepatitis

TORONTO (Reuters) - Loblaw Cos. Ltd. (Toronto:L.TO - news), Canada's largest grocery chain, has been hit with a C$105 million ($68 million) class action lawsuit following a hepatitis A health scare at one of its Toronto stores.

The suit, filed on Friday in the Ontario Superior Court of Justice, comes after Toronto health officials last month warned that customers at a Loblaw store in the city's west end may have been exposed to hepatitis A through an infected employee in the store's produce department.

Toronto's public health department launched a mass inoculation program after the scare, with thousands of people lining up for hepatitis A vaccinations.

The suit alleges Loblaw was negligent in permitting produce to be exposed to the hepatitis A virus, and breached its contracts with its customers by selling the food.

The lawsuit is seeking C$100 million in general and special damages and C$5 million in punitive damages, said Martin Doane, a lawyer with Paliare Roland, one of the firms which filed the suit.

Loblaw said it has fully cooperated with authorities and described the lawsuit as "without merit". It said it will defend itself vigorously.

"The company has acted responsibly throughout the incident in question," Loblaw said in a statement.

Loblaw said it has sent letters to some 50,000 households in the area of the affected store, explaining the situation, and has also offered refunds.

Hepatitis A, the most prevalent type of hepatitis, is a contagious virus that attacks the liver. It can be caught by eating raw or uncooked food or from food handled by people who have not washed their hands.

($1=$1.55 Canadian)